Solution manual for Fundamentals of Futures and Options Markets 9th Edition by John C Hull ISBN 0134083547 9780134083544

 Fundamentals of Futures and Options Markets 9th Edition by John C Hull – Ebook PDF Instant Download/Delivery: 0134083547, 9780134083544
Full dowload Fundamentals of Futures and Options Markets 9th Edition after payment

Product details:

ISBN 10: 0134083547
ISBN 13: 9780134083544
Author: John C Hull

This is the eBook of the printed book and may not include any media, website access codes, or print supplements that may come packaged with the bound book. For courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.   An Easily Understandable Introduction to Futures and Options Markets Fundamentals of Futures and Options Markets covers much of the same material as Hull’s acclaimed title, Options, Futures, and Other Derivatives. However, this text simplifies the language for a less mathematically sophisticated audience. The Ninth Edition of Fundamentals of Futures and Options Markets offers a wide audience a sound and easy-to-grasp introduction into financial mathematic

Fundamentals of Futures and Options Markets 9th Table of contents:

Chapter 1 Introduction

1.1 Futures Contracts

1.2 History of Futures Markets

The Chicago Board of Trade

The Chicago Mercantile Exchange

Electronic Trading

1.3 The Over-The-Counter Market

Market Size

1.4 Forward Contracts

1.5 Options

1.6 History of Options Markets

Put and Call Brokers and Dealers Association

The Formation of Options Exchanges

The Over-the-Counter Market for Options

1.7 Types of Trader

1.8 Hedgers

Hedging Using Forward Contracts

Hedging Using Options

A Comparison

1.9 Speculators

Speculation Using Futures

Speculation Using Options

A Comparison

1.10 Arbitrageurs

1.11 Dangers

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 2 Futures Markets and Central Counterparties

2.1 Opening and Closing Futures Positions

2.2 Specification of a Futures Contract

The Asset

The Contract Size

Delivery Arrangements

Delivery Months

Price Quotes

Price Limits and Position Limits

2.3 Convergence of Futures Price to Spot Price

2.4 The Operation of Margin Accounts

Daily Settlement

Further Details

The Clearing House and Its Members

Credit Risk

2.5 OTC Markets

Central Counterparties

Bilateral Clearing

Futures Trades vs. OTC Trades

2.6 Market Quotes

Prices

Settlement Price

Trading Volume and Open Interest

Patterns of Futures

2.7 Delivery

Cash Settlement

2.8 Types of Trader and Types of Order

Orders

2.9 Regulation

Trading Irregularities

2.10 Accounting and Tax

Accounting

Tax

2.11 Forward vs. Futures Contracts

Profits from Forward and Futures Contracts

Foreign Exchange Quotes

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 3 Hedging Strategies Using Futures

3.1 Basic Principles

Short Hedges

Long Hedges

3.2 Arguments for and Against Hedging

Hedging and Shareholders

Hedging and Competitors

Hedging Can Lead to a Worse Outcome

3.3 Basis Risk

The Basis

Choice of Contract

Illustrations

3.4 Cross Hedging

Calculating the Minimum Variance Hedge Ratio

Optimal Number of Contracts

Impact of Daily Settlement

3.5 Stock Index Futures

Stock Indices

Hedging an Equity Portfolio

Reasons for Hedging an Equity Portfolio

Changing the Beta of a Portfolio

Locking in the Benefits of Stock Picking

3.6 Stack and Roll

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Appendix

Review of Key Concepts in Statistics and the CAPM

Standard Deviation

Correlation

Linear Regression

Capital Asset Pricing Model

Chapter 4 Interest Rates

4.1 Types of Rates

Treasury Rates

LIBOR

Overnight Rates

Repo Rates

4.2 Swap Rates

Overnight Indexed Swaps

4.3 The Risk-Free Rate

4.4 Measuring Interest Rates

Continuous Compounding

4.5 Zero Rates

4.6 Bond Pricing

Bond Yield

Par Yield

4.7 Determining Zero Rates

Application to OIS Rates

4.8 Forward Rates

4.9 Forward Rate Agreements

Valuation

4.10 Theories of the Term Structure of Interest Rates

The Management of Net Interest Income

Liquidity

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Appendix

Exponential and Logarithmic Functions

Chapter 5 Determination of Forward and Futures Prices

5.1 Investment Assets vs. Consumption Assets

5.2 Short Selling

5.3 Assumptions and Notation

5.4 Forward Price for an Investment Asset

A Generalization

What If Short Sales Are Not Possible?

5.5 Known Income

A Generalization

5.6 Known Yield

5.7 Valuing Forward Contracts

5.8 Are Forward Prices and Futures Prices Equal?

5.9 Futures Prices of Stock Indices

Index Arbitrage

5.10 Forward and Futures Contracts on Currencies

A Foreign Currency as an Asset Providing a Known Yield

5.11 Futures on Commodities

Income and Storage Costs

Consumption Commodities

Convenience Yields

5.12 The Cost of Carry

5.13 Delivery Options

5.14 Futures Prices and Expected spot Prices

Keynes and Hicks

Risk and Return

The Risk in a Futures Position

Normal Backwardation and Contango

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 6 Interest Rate Futures

6.1 Day Count and Quotation Conventions

Day Counts

Price Quotations of U.S. Treasury Bills

Price Quotations of U.S. Treasury Bonds

6.2 Treasury Bond Futures

Quotes

Conversion Factors

Cheapest-to-Deliver Bond

Determining the Futures Price

6.3 Eurodollar Futures

Forward vs. Futures Interest Rates

Convexity Adjustment

6.4 Duration

Modified Duration

Bond Portfolios

Hedging Portfolios of Assets and Liabilities

6.5 Duration-Based Hedging Strategies Using Futures

Hedging a Bond Portfolio

Hedging a Floating-Rate Loan

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 7 Swaps

7.1 Mechanics of Interest Rate Swaps

LIBOR

Illustration

Using the Swap to Transform a Liability

Using the Swap to Transform an Asset

Organization of Trading

7.2 Day Count Issues

7.3 Confirmations

7.4 The Comparative-Advantage Argument

Illustration

Criticism of the Comparative-Advantage Argument

7.5 Valuation of Interest Rate Swaps

Bootstrapping LIBOR Forward Rates

7.6 How the Value Changes Through Time

7.7 Fixed-For-Fixed Currency Swaps

Illustration

Use of a Currency Swap to Transform Liabilities and Assets

Comparative Advantage

7.8 Valuation of Fixed-For-Fixed Currency Swaps

Valuation in Terms of Bond Prices

7.9 Other Currency Swaps

7.10 Credit Risk

7.11 Credit Default Swaps

7.12 Other Types of Swaps

Variations on the Standard Interest Rate Swap

Quantos

Equity Swaps

Options

Commodity, Volatility, and Other Swaps

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 8 Securitization and the Credit Crisis of 2007

8.1 Securitization

ABSs

ABS CDOs

8.2 The U.S. Housing Market

The Relaxation of Lending Standards

Subprime Mortgage Securitization

The Bubble Bursts

The Losses

The Credit Crisis

8.3 What Went Wrong?

Regulatory Arbitrage

Incentives

8.4 The Aftermath

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 9 Mechanics of Options Markets

9.1 Types of Option

Call Options

Put Options

Early Exercise

9.2 Option Positions

9.3 Underlying Assets

Stock Options

ETP Options

Foreign Currency Options

Index Options

Futures Options

9.4 Specification of Stock Options

Expiration Dates

Strike Prices

Terminology

Flex Options and Other Nonstandard Products

Dividends and Stock Splits

Position Limits and Exercise Limits

9.5 Trading

Market Makers

Offsetting Orders

9.6 Commissions

9.7 Margin Requirements

Writing Naked Options

Other Rules

9.8 The Options Clearing Corporation

Exercising an Option

9.9 Regulation

9.10 Taxation

Wash Sale Rule

Constructive Sales

9.11 Warrants, Employee Stock Options, and Convertibles

9.12 Over-The-Counter Options Markets

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 10 Properties of Stock Options

10.1 Factors Affecting Option Prices

Stock Price and Strike Price

Time to Expiration

Volatility

Risk-Free Interest Rate

Dividends

10.2 Assumptions and Notation

10.3 Upper and Lower Bounds for Option Prices

Upper Bounds

Lower Bound for Calls on Non-Dividend-Paying Stocks

Lower Bound for Puts on Non-Dividend-Paying Stocks

10.4 Put–Call Parity

American Options

10.5 Calls on a Non-Dividend-Paying Stock

Bounds

10.6 Puts on a Non-Dividend-Paying Stock

Bounds

10.7 Effect of Dividends

Lower Bound for Calls and Puts

Early Exercise

Put–Call Parity

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 11 Trading Strategies Involving Options

11.1 Principal-Protected Notes

11.2 Strategies Involving a Single Option and a Stock

11.3 Spreads

Bull Spreads

Bear Spreads

Box Spreads

Butterfly Spreads

Calendar Spreads

Diagonal Spreads

11.4 Combinations

Straddle

Strips and Straps

Strangles

11.5 Other Payoffs

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 12 Introduction to Binomial Trees

12.1 A One-Step Binomial Model and a No-Arbitrage Argument

A Generalization

Irrelevance of the Stock’s Expected Return

12.2 Risk-Neutral Valuation

The One-Step Binomial Example Revisited

Real World vs. Risk-Neutral World

12.3 Two-Step Binomial Trees

A Generalization

12.4 A Put Example

12.5 American Options

12.6 Delta

12.7 Determining u and d

12.8 Increasing the Number of Time Steps

12.9 Using DerivaGem

12.10 Options on Other Assets

Options on Stocks Paying a Continuous Dividend Yield

Options on Stock Indices

Options on Currencies

Options on Futures

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Appendix

Derivation of Black–Scholes–Merton Option Pricing Formula from Binomial Tree

Chapter 13 Valuing Stock Options: The Black–Scholes–Merton Model

13.1 Assumptions about how Stock Prices Evolve

The Lognormal Distribution

13.2 Expected Return

13.3 Volatility

13.4 Estimating Volatility from Historical Data

Trading Days vs. Calendar Days

13.5 Assumptions Underlying Black–Scholes–Merton

13.6 The Key No-Arbitrage Argument

13.7 The Black–Scholes–Merton Pricing Formulas

Properties of the Black–Scholes–Merton Formulas

Understanding and N(d1) and N(d2)

13.8 Risk-Neutral Valuation

Application to Forward Contracts

13.9 Implied Volatilities

The VIX Index

13.10 Dividends

European Options

American Call Options

Black’s Approximation

Summary

Further Reading

On the Black–Scholes–Merton model and its extensions

On the causes of volatility

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Appendix

The Early Exercise of American Call Options on Dividend-Paying Stocks

Chapter 14 Employee Stock Options

14.1 Contractual Arrangements

The Early Exercise Decision

14.2 Do Options Align the Interests of Shareholders and Managers?

14.3 Accounting Issues

Nontraditional Option Plans

14.4 Valuation

Dilution

14.5 Backdating Scandals

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 15 Options on Stock Indices and Currencies

15.1 Options on Stock Indices

Portfolio Insurance

The Strategy

The Result

When the Portfolio’s Beta Is Not 1.0

The Strategy

The Outcome

15.2 Currency Options

Range Forwards

15.3 Options on Stocks Paying Known Dividend Yields

Lower Bounds for Option Prices

Put-Call Parity

Pricing Formulas

15.4 Valuation of European Stock Index Options

Using Forward Prices

Implied Dividend Yields

15.5 Valuation of European Currency Options

Using Forward Exchange Rates

15.6 American Options

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 16 Futures Options and Black’s Model

16.1 Nature of Futures Options

Expiration Months

16.2 Reasons for The Popularity of Futures Options

16.3 European Spot and Futures Options

16.4 Put–Call Parity

16.5 Bounds for Futures Options

16.6 A Futures Price as an Asset Providing a Yield

16.7 Black’s Model for Valuing Futures Options

16.8 Using Black’s Model Instead of Black-Scholes-Merton

16.9 Valuation of Futures Options Using Binomial Trees

A Generalization

Multistep Trees

16.10 American Futures Options vs. American Spot Options

16.11 Futures-Style Options

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 17 The Greek Letters

17.1 Illustration

17.2 Naked and Covered Positions

A Stop-Loss Strategy

17.3 Greek Letter Calculation

17.4 Delta

Delta of European Stock Options

Dynamic Aspects of Delta Hedging

Where the Cost Comes From

Delta of a Portfolio

Transaction Costs

17.5 Theta

17.6 Gamma

Making a Portfolio Gamma Neutral

Calculation of Gamma

17.7 Relationship Between Delta, Theta, and Gamma

17.8 Vega

17.9 Rho

17.10 The Realities of Hedging

17.11 Scenario Analysis

17.12 Extension of Formulas

Delta of Forward Contracts

Delta of a Futures Contract

17.13 Creating Options Synthetically for Portfolio Insurance

Use of Index Futures

17.14 Stock Market Volatility

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 18 Binomial Trees in Practice

18.1 The Binomial Model for a Non-Dividend-Paying Stock

Risk-Neutral Valuation

Determination of p, u, and d

The Tree of Stock Prices

Working Backward through the Tree

Illustration

Expressing the Approach Algebraically

Estimating Delta and Other Greek Letters

18.2 Using the Binomial Tree for Options on Indices, Currencies, and Futures Contracts

18.3 The Binomial Model for a Dividend-Paying Stock

Known Dividend Yield

Known Dollar Dividend

18.4 Extensions of the Basic Tree Approach

Time-Dependent Interest Rates and Volatilities

The Control Variate Technique

18.5 Alternative Procedure for Constructing Trees

18.6 Monte Carlo Simulation

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 19 Volatility Smiles

19.1 Foreign Currency Options

Empirical Results

Reasons for the Smile in Foreign Currency Options

19.2 Equity Options

The Reason for the Smile in Equity Options

19.3 The Volatility Term Structure and Volatility Surfaces

The Role of the Model

19.4 When a Single Large Jump is Anticipated

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Appendix

Why the Put Volatility Smile Is the Same As the Call Volatility Smile

Chapter 20 Value at Risk and Expected Shortfall

20.1 The VaR and ES Measures

The Time Horizon

20.2 Historical Simulation

Illustration: Investment in Four Stock Indices

Expected Shortfall

Stressed VaR and Stressed ES

20.3 Model-Building Approach

Daily Volatilities

Single-Asset Case

Two-Asset Case

The Benefits of Diversification

ES Calculation

20.4 Generalization of Linear Model

Correlation and Covariance Matrices

Handling Interest Rates

Applications of the Linear Model

The Linear Model and Options

20.5 Quadratic Model

20.6 Estimating Volatilities and Correlations

EWMA

Correlations

Example Involving Four Stock Indices

Use of EWMA

20.7 Comparison of Approaches

20.8 Back Testing

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 21 Interest Rate Options

21.1 Exchange-Traded Interest Rate Options

21.2 Embedded Bond Options

21.3 Black’s Model

Extension of Black’s Model

21.4 European Bond Options

Yield Volatilities

21.5 Interest Rate Caps

The Cap as a Portfolio of Interest Rate Options

Floors and Collars

Valuation of Caps and Floors

Using DerivaGem

21.6 European Swap Options

Valuation of European Swaptions

21.7 Term Structure Models

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 22 Exotic Options and Other Nonstandard Products

22.1 Exotic Options

Packages

Nonstandard American Options

Gap Options

Forward Start Options

Cliquet Options

Compound Options

Chooser Options

Barrier Options

Binary Options

Lookback Options

Shout Options

Asian Options

Options to Exchange One Asset for Another

Options Involving Several Assets

22.2 Agency Mortgage-Backed Securities

Collateralized Mortgage Obligations

IOs and POs

22.3 Nonstandard Swaps

Variations on the Vanilla Deal

Compounding Swaps

Valuation and Convexity Adjustments

LIBOR-in-Arrears Swap

CMS Swaps

Differential Swaps

Equity Swaps

Accrual Swaps

Cancelable Swaps

Commodity Swaps

Volatility and Variance Swaps

Other Swaps

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 23 Credit Derivatives

23.1 Credit Default Swaps

Recovery Rate

Credit Default Swaps and Bond Yields

The Cheapest-to-Deliver Bond

23.2 Valuation of Credit Default Swaps

Marking to Market a CDS

Binary Credit Default Swaps

Basket Credit Default Swaps

23.3 Total Return Swaps

23.4 CDS Forwards and Options

23.5 Credit Indices

23.6 The use of Fixed Coupons

23.7 Collateralized Debt Obligations

Synthetic CDOs

Standard Portfolios and Single-Tranche Trading

The Role of Default Correlation

Summary

Further Reading

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Questions

Chapter 24 Weather, Energy, and Insurance Derivatives

24.1 Weather Derivatives

24.2 Energy Derivatives

Crude Oil

Natural Gas

Electricity

Characteristics of Energy Prices

How an Energy Producer Can Hedge Risks

24.3 Insurance Derivatives

Summary

Further Reading

On weather derivatives

On energy derivatives

On insurance derivatives

Quiz (Answers at End of Book)

Practice Questions (Answers in Solutions Manual/Study Guide)

Further Question

Chapter 25 Derivatives Mishaps and what we can Learn From Them

25.1 Lessons for all Users of Derivatives

Define Risk Limits

Take the Risk Limits Seriously

Do Not Assume You Can Outguess the Market

Do Not Underestimate the Benefits of Diversification

Carry out Scenario Analyses and Stress Tests

25.2 Lessons for Financial Institutions

Monitor Traders Carefully

Separate the Front, Middle, and Back Office

Do Not Blindly Trust Models

Be Conservative in Recognizing Inception Profits

Do Not Sell Clients Inappropriate Products

Beware of Easy Profits

Do Not Ignore Liquidity Risk

Beware When Everyone Is Following the Same Trading Strategy

Do Not Make Excessive Use of Short-Term Funding for Long-Term Needs

Market Transparency Is Important

Manage Incentives

Never Ignore Risk Management

25.3 Lessons for Nonfinancial Corporations

Make Sure You Fully Understand the Trades You Are Doing

Make Sure a Hedger Does Not Become a Speculator

Be Cautious about Making the Treasury Department a Profit Center

People also search for Fundamentals of Futures and Options Markets 9th:

fundamentals of futures and options markets 9e pdf    
fundamentals of futures and options markets ninth edition    
fundamentals of futures and options markets 10th edition    
fundamentals of futures and options markets answers    
fundamentals of futures and options markets australasian edition